What Will Angel Report as Diluted Earnings Per Share for 2009

Multiple Choice

What will Angel report as diluted earnings per share for 2009, rounded to the nearest cent?

A) $6.43
B) $6.25
C) $6.22
D) None of these is correct.* (2,000,000 5%) = $100,000 in interest; $100,000 20% = $20,000 in tax savings So, after-tax interest cost = $80,000.**Because, this increases EPS, it is anti-dilutive.Only $6.50 basic EPS will be reported.